TGC-1 and PhosAgro Strike a Bargain to Cooperate in “Green” Energy
Within the 2021 Saint Petersburg International Economic Forum, TGC-1 PJSC and PhosAgro PJSC signed a cooperation agreement relating to the proof of origin of generated and consumed electricity.
The parties intend to conclude “green” electricity sale and purchase transactions through the mechanism of direct contracts or electric energy certificates of origin.
Even today, being a leading producer of electricity in the Northwest and developing its hydropower sector, TGC-1 offers its existing and potential partners a real tool to reduce the carbon footprint, comply with environmental standards and climate commitments. “Today’s agreement is an important step in the formation of long-term relations in the emerging green energy market in Russia,” said Vadim Vederchik, Managing Director of TGC-1 PJSC.
“PhosAgro and TGC-1 have a long-term partnership history. For decades, CHPPs and HPPs, which are now part of TGC-1, have been reliable providers of heat and electricity for our enterprises and cities of operation. Our Apatit, mining and processing plant, and TGС-1 power plants in Murmansk Region became the first enterprises of the mining industry and the Polar Region GOELRO, respectively. Early this year, we reached a new level of cooperation, having reserved from TGC-1 the volumes of “green” electricity for Apatit, mining and processing plant, which volumes will cover over 20% of the energy demand of our plant as early as this year. And today we are agreeing on a significant increase in the consumption of “green” electricity from TGC-1 HPPs,” said Andrey Guryev, Chairman of the Management Board, Director General of PhosAgro PJSC, during the agreement-signing ceremony.
Earlier, TGC-1 PJSC concluded free contracts for the electricity sale and purchase with Siburenergomanagment, AB InBev Efes. Besides, TGC-1 closed a major transaction for the issuance of “green” I-REC certificates to Polyus PJSC.
For reference
TGC-1 PJSC (within Gazprom Energoholding Group) is the leading producer and supplier of electricity and heat power in the Northwest of Russia. TGC-1 comprises 52 power plants across four constituent entities of the Russian Federation: Saint Petersburg, the Republic of Karelia, Leningrad and Murmansk Regions.
Unlike other Russian generating companies, TGC-1 has a unique structure of production assets. Hydrogeneration accounts for 40% of its installed capacity. These are 40 HPPs with a total capacity of circa 3,000 MW.